USTR Outlines "Next Steps" for Implementing the Korea, Colombia, and Panama FTAs

First Step is for President to Sign FTA Bills

According to the fact sheet, the President will sign legislation implementing U.S. trade agreements with Korea, Colombia, and Panama. The length of time necessary to implement trade agreements varies, but the USTR says the President is committed to bringing these agreements into force as soon as possible.

Next Steps After Enactment of Bills

After enactment (signing), the following steps are required for the FTAs to enter into force:

Korea Must Still Ratify KORUS, Colombia and Panama Already Ratified FTAs

According to the USTR, Korea’s National Assembly is now considering KORUS.

The Colombian and Panamanian legislatures have ratified their respective agreements.

Each partner country must also demonstrate that it is in compliance with those obligations that will take effect on day one in order for the FTAs to enter into force.

U.S. to Schedule Cooperative Work to Implement FTAs Following Bill Signing

Immediately after the President signs the FTA implementing legislation, the U.S. will schedule cooperative work with Korea, Colombia, and Panama on implementing the FTAs.

The U.S. will hold discussions with the partner countries to review both countries’ laws and regulations, and ensure compliance with the obligations of the FTA that will take effect on the day the FTA enters into force. U.S. officials will also consult with Congress and with U.S. stakeholders.

Exchange of Diplomatic Notes Necessary for FTAs to Enter into Force

The provisions of the FTAs provide for entry into force through the exchange of formal diplomatic notes at a time agreeable to both countries. In the U.S., the President must first determine that the trading partner has come into compliance with obligations that will take effect when the agreement enters into force. For Korea, this includes the pertinent obligations of the 2011 exchange of letters on autos. In the case of Colombia, the Administration will also ensure that Colombia has successfully implemented key elements of the Labor Action Plan before bringing that agreement into force.

U.S. Must Issue Proclamation for Tariff Revisions, Product-Specific Rules, Etc.

The FTA implementing bills contain all changes to U.S. law necessary to bring the U.S. into compliance with the agreements. In addition to these changes in U.S. law, for each FTA, the U.S. will issue a proclamation containing specific tariff revisions and product-specific rules, and make additional administrative and regulatory changes covering issues such as customs and procurement.

USTR to Monitor Compliance and Enforce FTAs Going Forward

Following the entry into force of each FTA, work continues at the Office of the U.S. Trade Representative to ensure that each partner country remains in compliance with its immediate obligations, and comes into compliance with obligations that take effect later on. As with all U.S. trade agreements, USTR will monitor compliance and actively enforce U.S. rights under these three trade agreements going forward.

(Both the KORUS implementing bill and the GSP/MPF/TAA bill include provisions to raise the merchandise processing fee (MPF). See ITT's Online Archives 11101111, for summary of the Merchandise Processing Fee provisions in these bills.

See ITT’s Online Archives 11100417 for summary noting that the Colombia FTA bill contains a retroactive renewal of the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) through July 31, 2013.

See ITT’s Online Archives 11100617 for summary of the availability of product duty rates for Korea, Colombia, and Panama FTAs.

See ITT's Online Archives 11101306 for summary of Congressional passage of FTA bills.)

Statements regarding congressional approval of the FTAs available here.